Since the release of ChatGPT in 2022, the proportion of AI in discussions related to the workforce has risen almost exponentially. Not only in the tech industry, but even non-tech industries are rapidly incorporating AI into their employment strategies, and the proportion of AI in discussions about layoffs is also soaring.

AI is no longer just a substitute for the tech department; it has become a core variable in discussions about labor, costs, and efficiency across all industries and management levels. Companies related to AI are seeing a faster decline in job openings, and companies discussing AI-related layoffs are also laying off employees more quickly. AI has already become a cost optimization tool for many enterprises.

I previously discussed a viewpoint that if a technological breakthrough can simultaneously change the efficiency of capital, the efficiency of labor, and the cost structure of enterprises, it possesses the underlying characteristics that can ignite an industrial revolution.

The first industrial revolution was the steam engine changing energy efficiency.

The second industrial revolution was electricity changing production efficiency.

Now, AI is changing cognitive efficiency and decision-making efficiency. This means that the core bottleneck of productivity is shifting from mechanics and energy to cognition and management. When a company can use AI to expand the marginal output of employees, compress fixed costs, eliminate repetitive labor, and automate complex processes, its scale effects will be faster and more thorough than in any previous era.

A true industrial revolution occurs when technology can redefine the relationships between unit costs, unit labor, and unit output. AI is now moving in this direction, allowing the same number of people to accomplish ten times the tasks of the past, the same number of positions to support a larger enterprise scale, and the same capital investment to yield higher profit returns.

Companies are no longer measuring growth by the expansion of headcount but by the expansion of algorithmic capabilities. Investors are no longer focused on the size of a company's workforce but on the company's model capabilities, data assets, and level of automation.

This may be the third industrial revolution.

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